Rocket Companies Stock Fair Value Calculation – Rocket Companies Argues ‘Meme-Stock’ Investors Should Not Be Allowed to Sue Collectively
December 13, 2023
🌧️Trending News
Rocket Companies ($NYSE:RKT) has recently argued that ‘meme-stock’ investors should not be allowed to sue collectively. The company, best known for its financial services subsidiaries Quicken Loans and Rocket Mortgage, has stated that such investors do not qualify as a “class” in any legal sense and should thus not be allowed to file a lawsuit collectively. It offers a variety of financial services, from home mortgages to auto loans and personal loans. Recently, Rocket Companies has made headlines due to the significant surge in the value of its stock, causing it to become known as one of the so-called “meme stocks.”
However, the company has argued that such investors should not be allowed to file lawsuits collectively due to the fact that they do not constitute a class in any legal sense.
Stock Price
On Tuesday, ROCKET COMPANIES stock opened at $10.6 and closed at $10.8, up by 2.1% from the previous closing price of 10.6. The company argued that allowing investors to band together and sue in a group would be “needlessly wasteful” and would cause “unnecessary delays and expenses”. Furthermore, ROCKET COMPANIES argued that the investors should be forced to pursue individual cases as the issues vary too much from person to person, making it difficult to have a collective lawsuit. It remains to be seen how this issue will be resolved, as many investors feel they are entitled to their day in court. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rocket Companies. More…
| Total Revenues | Net Income | Net Margin |
| – | -22.51 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rocket Companies. More…
| Operations | Investing | Financing |
| 10.82k | 578.74 | -12.82k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rocket Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.65k | 12.14k | – |
Key Ratios Snapshot
Some of the financial key ratios for Rocket Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Rocket Companies Stock Fair Value Calculation
We at GoodWhale have conducted an analysis of ROCKET COMPANIES‘ wellbeing, and our findings suggest that the fair value of ROCKET COMPANIES share is around $11.3. This figure was calculated using our proprietary Valuation Line, which takes into account market dynamics and patterns to determine fair prices. Currently, ROCKET COMPANIES stock is being traded at $10.8, which is a fair price that is undervalued by 4.6%. Therefore, it can be concluded that there is a potential buying opportunity in the stock right now for those who are looking to invest in it. More…
Peers
Its competitors include Ocwen Financial Corp, Federal National Mortgage Association Fannie Mae, Home Capital Group Inc.
– Ocwen Financial Corp ($NYSE:OCN)
Ocwen Financial Corporation is a financial services holding company that, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, Real Estate Owned (REO), Investment Management and Corporate.
– Federal National Mortgage Association Fannie Mae ($OTCPK:FNMA)
As of 2022, Fannie Mae has a market cap of 584.66M. The company is a government-sponsored enterprise that provides financial products and services to homeowners and renters. Its products include single-family and multifamily mortgages, home equity loans, and lines of credit. Fannie Mae was founded in 1938 and is headquartered in Washington, D.C.
– Home Capital Group Inc ($TSX:HCG)
As of 2022, Home Capital Group Inc has a market cap of 982.97M. The company is a provider of alternative residential mortgage solutions in Canada. Home Capital offers residential mortgage products, including first and second mortgages, home equity lines of credit, and lines of credit. The company was founded in 1954 and is headquartered in Toronto, Canada.
Summary
Rocket Companies, the Michigan-based financial services provider, has recently been the subject of investor scrutiny due to its meteoric rise in the stock market. Analysts have suggested that the company’s success may be driven by the rise of meme stock investors, who have been buying and holding shares in Rocket Companies in the hopes of quick returns. In response, Rocket Companies has come out in opposition to a class-action lawsuit, arguing that its investors should not be grouped together as a class. Investors should continue to monitor Rocket Companies’ financial performance and risk profile as they evaluate its potential as an investment.
